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Ekurhuleni budget maintains ‘pro-poor' stance

28th April 2016

By: Samantha Herbst

Creamer Media Deputy Editor

  

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In an attempt to maintain a pro-poor stance on public spending aimed at improving social development, the City of Ekurhuleni will inject R3.5-billion of its 2016 budget into its community empowerment package, Mintirho Ya Vula Vula.

Tabling the Budget Vote for the city on Thursday, MMC for finance Councillor Moses Makwakwa noted that Ekurhuleni had been experiencing a “consistent decline” in economic growth and that unemployment remained “stubbornly firm” among young people.

He added that the city’s population was estimated to grow by an average of 2.5% between 2014 and 2019.

The declining contribution of the manufacturing sector was also highlighted as a concern, and this persisted despite government’s interventions to rejuvenate the sector through the revitalisation of the manufacturing and industrial sectors.

“Although there are concerns, our economy has been resilient and we are working hard to improve our growth prospects and to build investor confidence,” said Makwakwa.

With this in mind, the city was investing in Mintirho Ya Vula Vula with the intention of expanding procurement spend to youth-owned entities and solidifying the foundation and growth of learner contractors involved in Vukuphile, a national Expanded Public Works Programme-led contractor development programme.

The community empowerment programme also hoped to change the outlook of the city’s townships through community works programmes, as well as support entrepreneurship and improve the implementation of the Department of Trade and Industry’s Black Industrialists programme in Ekurhuleni.

Furthering the city’s attempts to empower the community, R507-million was allocated to replenish the Ekurhuleni ambulance fleet with 50 new vehicles, and to construct and/or upgrade several community facilities, including clinics, childhood development centres, swimming pools, tennis courts, libraries and a theatre.

Makwakwa further noted that he had heeded the call of executive mayor Mondli Gungubele, who requested an improvement in safety and security in his State of the City address.

With this in mind, the city committed to the employment of an additional 450 police officers on condition, however, that overtime claims decline.

“No employee must plan their monthly income based on anticipated overtime [and] I have instructed the finance department to be extremely vigilant on this issue,” warned Makwakwa.

REURBANISATION, REINDUSTRIALISATION
Makwakwa further highlighted that the city would set aside R3.2-billion for the reurbanisation of Ekurhuleni, “so as to achieve sustainable integration”, while R2.9-billion was allocated for the repair and maintenance of energy assets, water and sanitation assets, roads and stormwater drains.

“Over and above this, we have allocated an additional R200-million in the capital budget for the reconstruction of the roads and stormwater system,” he said.

He noted that repairs and maintenance needs had increased over the years, as some areas in Ekurhuleni were 100 years or older.

“It is, therefore, important that we spend the allocated amount for repairs and maintenance to protect the integrity of our infrastructure, and ensure sustainable quality services to our people,” said Makwakwa.

Meanwhile,  R141-million had been allocated to reindustrialise the city, including R88-million  “to strengthen industrial competitiveness through the development of . . . the Aerotropolis nerve centre, the investor information centre, and the Ekurhuleni innovation hub”.

Funds would also be allocated for tourism purposes (R19-million), to develop an enterprise hub and a vocational skills centre (R15-million), and to reindustrialise corridors to further drive economic development (R211-million).

Further, R100-million had been set aside for the installation of bulk infrastructure to enable new development. Key developments in this corridor included Tambo Springs Inland Port and the new PRASA manufacturing plant in Dunnottar near Nigel.

The city also allocated R266-million for the implementation of environmental initiatives to help keep the city clean, R33-million for sustaining agriculture activities, while R78-million was set aside for the promotion of township economies.

BUDGET FUNDING
In an effort to provide basic services to the people of Ekurhuleni, the city proposed an assessment rate increase of 7.5%, which Makwakwa noted was lower than the average rate increase of other metros (8.1%).

He further highlighted that, in addition to the 9.4% electricity tariff increase, the water and sanitation tariffs would increase by 9% and the refuse removal tariff would go up by 8% for both businesses and residences.

Cemetry fees would remain the same for Ekurhuleni residents, but would increase by 10% for outsiders.

Makwakwa added that pensioners earning a monthly income of R2 840 qualify for a 100% rebate and that the monthly income threshold for a 40% rebate improved from R12 750 to R13 640.

He further pointed out that the 2015 assessment by South Africa Cities Network, in its ‘State of Cities Finances’ report, stated that Ekurhuleni’s comparative cost of services packages was the lowest, and that the city was the cheapest Type A municipality in the country.

Meanwhile, triggered by the continuous revenue decline, especially in electricity, Makwakwa noted that he had commissioned the Department of Finance to conduct value engineering processes on revenue in energy and water infrastructure, to minimise and eventually reduce leaks.

Edited by Creamer Media Reporter

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